BMI View: FID delays, falling oil and gas prices, costs, infrastructure constraints and the ongoingregulatory overhaul are challenges the country will face as it moves to develop its massive offshore gasresources. While the timing of first LNG is particularly difficult to pin-point, notably for the onshoreterminal, we expect Mozambique to make its presence felt in the global LNG market by early/mid nextdecade.

Mozambique's proven gas reserves have increased substantially to 2.8tcm, as appraisal activity is provingup large offshore discoveries. While appraisal activities have come to an end, the final recoverablereserves are not yet know until companies book final reserves. New exploration on more frontier andonshore blocks, however, will proceed slowly despite notable interest.

We expect Eni will make a final investment decision on its 3.3bcm Coral floating liquefied naturalgas (FLNG) project in H116, with first production in 2020. This will be Mozambique's first offshore fieldproduction and LNG exports. This will be followed by Anadarko's 6.9bcm Train 1 at the Afungi onshoreLNG terminal in 2021, and Eni's 6.9bcm Train 2 at the Afungi terminal in 2022.